Chapter 8 ideas

1.  When it comes to estimating projects one does not want to generalize or use false assumptions.  Projects are unique and have many underlying factors and parts to their whole.  New problems are attempting to be solved, new products are attempting to be made, and it is not easy to just come up with a general figure if simply asked.  The key to success in the estimation process is to avoid the classic mistakes.  Making a “Ballpark” figure is one of them to avoid.  Another is estimating without complete specifications.  This is dangerous because it isn’t clear what the project will be producing, what’s included, and how long the duration will be.  Confusing a bid with an estimate is another mishap to make. A bid will include the profit margin for the firm where the estimate is a projection of just how much and how long the project will take to complete.  Padding the estimate adds more time and money to the project without any legitimate reasoning behind it.  That is not a good business practice because then those additional resources could be used up just because they were available and the project’s efficiency level would be compromised. 

2.  Try to have the appropriate attitude toward estimation.  One, have the right people make the estimate.  They must be experienced with the work they are estimating so they can understand the work that needs to be done.  The people who will actually perform the work should also be involved in the estimating process.  They will know how much time it will take to complete the tasks.  The goals and techniques of estimating need to be understood by the estimators themselves.  Estimating is a tough practice and needs to be respected with attention to detail and respect to limited resources.  Estimating should be based on experience and keeping a log or database of past projects will aid in the success of further projects down the road.

3.  There are a vast variety of ways to approach accurate estimating.  The art of estimation is a field of itself with extensive research and development behind it.  Some ways are known as apportioning or top-down estimating.  What it does is begins with a total project estimate then assigns a percentage of that total to each of the phases and tasks of the project.  The structure provided for the framework on top-down estimating is the work breakdown structure.  However, some large assumptions are made with this type of strategy: historical projects must be closely related to the project at hand in order to be accurate and the total project estimate must be precise as well.  It is not as accurate as using bottom-up estimating.